WLTP drives increase in daily rental bookings
A lack of clarity over future company car tax rates, thanks to the introduction of the Worldwide Harmonised Light Vehicle Test Procedure (WLTP), is leading to a rise in daily rental bookings, says Epyx.
Activity through the company’s 1link Hire Network platform has been increasing in recent months and the new vehicle emissions testing regime appears to be the key driver, the company says.
Tim Meadows, commercial director at Epyx, said that there had been a 17% increase in bookings over the same period last year.
“Fleets are waiting for the Government to make the future tax situation around WLTP clearer and for many manufacturers to release their stats,” he said.
“All of this is making operators wary about the cars that they are buying and, where possible, quite a number are choosing to put off the decision until they have more information.”
Some are extending contracts that are ending, as many leasing companies have reported, but others are using daily rental, which allows them to defer acquiring a new car in a very flexible manner.
Meadows continued: “We have seen an increase in the number of cars that are being booked on an ongoing basis and WLTP appears to be the cause of this, both anecdotally from our conversations with customers and from examining the patterns of the bookings.
Meadows expects the trend to continue until the WLTP situation is resolved.